According to BIR adopting digital system of tracking cigarette supply, distribution | Inquirer Business, to help combat the illegal trade of the good and close revenue leaks, the Bureau of Internal Revenue (BIR) will soon launch a digital system that will track the supply and distribution of tobacco products across the nation. The system will also enable customers to verify whether they are purchasing smuggled or counterfeit cigarettes.
Revenue Commissioner Romeo Lumagui Jr. stated at a forum hosted by the think tank Action for Economic Reform (AER) on October 17 that this would enhance the BIR's current Internal Revenue Stamps Integrated System (IRSIS), a platform that oversees the affixing and distribution of revenue stamps on tobacco products that were lawfully levied with excise tax.
According to Lumagui, the BIR would add QR codes to cigarette tax stamps so that customers could use their phones to scan the codes and verify the authenticity of the tobacco items they purchase. Talks have begun between the bureau and prospective vendors for the initiative, which is expected to go live in January 2025.
According to government data, excise taxes on tobacco and alcohol goods brought in P261.64 billion in 2022, a 2 percent decrease from the previous year's total.
The amount collected last year, according to BIR adopting digital system of tracking cigarette supply, distribution | Inquirer Business, was significantly below than BIR's target of P313.2 billion because of the underwhelming sales of tobacco goods. The state intends to collect P359.17 billion in sin taxes this year, P244.06 billion of which would come from the tobacco industry.
According to BIR adopting digital system of tracking cigarette supply, distribution | Inquirer Business, Lumagui stated that the BIR would shortly issue a new memorandum revising the schedule of fines and penalties for offenders of excise tax laws in an effort to further discourage tobacco smuggling, prior to the deployment of a digital monitoring system.
